image Five major psychological traps for a beginner trader

Spread the love

Even with knowledge, beginners can make bad decisions under the pressure of emotion. Experts explained why this happens and how to stop making the same mistakes.

In addition to technical and fundamental analysis, the correct psychological attitude plays an important role in trading. Under the pressure of emotions, you can commit rash acts, which usually cause serious losses.

  • Gambler’s Syndrome

For traders who are susceptible to gambler’s syndrome, the expert recommends using the following decision-making technique: think not about why it is worth opening this position, but about why it is better not to open it.

  • Premature exit from the deal

At the first successful transaction, newcomers to cryptocurrency trading tend to quickly fix their profits and close the position prematurely. In this case, they lose part of the profit that they could have gained. According to the director of the cryptocurrency exchange service , traders who did not conduct a thorough analysis of the asset before the transaction find themselves in such situations.

  • Dependence on other market participants

Studying someone else’s experience can help you with this. However, when you are in the market, follow only your rules and listen only to yourself.

  • Accept losses

There will definitely be failed decisions, you need to force yourself to analyze them. No trader works without losses

  • Euphoria from the first deal

The first profit brings positive emotions to the trader, which can only push him to break discipline. In the long term, this can lead to the fact that the money earned can be lost as a result of a failed transaction. To avoid falling into this trap, an expert in technical analysis and a leading specialist at advises to withdraw some of the profits and spend it on something tangible.